Definition
Extra inventory held to guard against stockouts caused by demand spikes or supply delays. It acts as a buffer that absorbs variability in both lead time and demand. For South African importers, longer ocean transit and port delays often justify higher safety stock than purely domestic supply chains.
Frequently asked questions
What is Safety Stock?
Extra inventory held to guard against stockouts caused by demand spikes or supply delays. It acts as a buffer that absorbs variability in both lead time and demand. For South African importers, longer ocean transit and port delays often justify higher safety stock than purely domestic supply chains.
Which glossary terms are related to Safety Stock?
Safety Stock is a supply chain & warehousing term in the South African import/export industry. Related terms in the same area include 3PL (Third-Party Logistics), 4PL (Fourth-Party Logistics), ABC Analysis, Bonded Logistics, Bonded Warehouse (SOS/OS) — each has its own plain-English definition in the TradeCaravan glossary.